Identify the type of hedge under each of the following transactions:
Definitions:
Interest Expense
The cost incurred by an entity for borrowed funds, represented as an expense on the income statement.
Discount Rate
The discount rate employed to calculate the current value of future cash flows in a discounted cash flow assessment.
Borrower
An entity or individual that receives funds from another party with the agreement to return the principal amount along with interest.
Federal Income Tax
The tax levied by the national government on the annual income of individuals, corporations, trusts, and other legal entities.
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